Crypto.com Revives CRO Coin Card Crypto Staking (were we trolled?)

2nd of May 2022, Crypto.com announced in an email that they are killing their famous crypto card cro staking program (see this video: https://youtu.be/M1X9SZxTZok)

Of course there was very vocal hoo-ha and complaints.

There were many large amount sell orders too, in the millions of CRO coin being sold. Personally, as a mixed income investor and growth investor, CRO was up my alley because it provided me with income

  • 12% from Earn and
  • 12% from Stake

When the Earn program was knee capped by adding the tiering in (basically anything above USD 30K, the earn is pittance) – I knew their earn program days were over.

So I felt it was still okay that I could still lean on 12% from CRO card staking.

But when they announced overnight (literally the night before, as I got the email on 2nd May but the effects started 1st May), it was brutal and sincerely, fucking unprofessionally annoying.

I considered, and since I couldn’t get income from CRO, I think my CRO bag is too much, so I decided to

  • unstake my Icy White tier CRO amounts
  • sell those CRO amounts for both top ten crypto as well as to fiat (withdraw to my bank account)

I still have a good chunk of CRO staked in the exchange, but I’ll think about what to do with it later when the staking is finished.

Is CDC out of money?

Some of the hearsay (lol, in a nod to Depp vs Heard case) is that Crypto.com is outta money because they spent too much in adspend (advertising spend).

It’s unlikely they are out of money. This year itself, in January, they set aside USD 500 million to invest in early stage crypto start ups (ie crypto venture capitalism), paid out of their balance sheet (ie cash from business operations). They have cash.

So….if they weren’t outta cash, then why?

A few reasons in my speculated theories (hey, I’m no insider, but I can estimate why)

  1. It was in their plan all along to reduce such non-revenue-generating expenses. Paying out in crypto earn and cro staking doesn’t generate revenue for them at all. It was good and sexy to attract clients and users* (the keyword here is USERS. They want users who use their platforms and trade, so that it generates revenue).
  2. Secondly, they burned 80% of CRO so it’s possible that they need to create a buy-back event AS well as shake out passive, non-active non-revenue generating hodlers.
  3. This isnt their first time reducing earn or stake rewards since they started operations.

What should you do?

Dr Crypto Finance said this in this article: https://drcryptofinance.substack.com/p/crypto-dot-com-cdc-cro-crypto-crisis?

  • Don’t Sell Your CRO Right Now —> CDC is changing its fundamentals. This doesn’t mean it has lost its fundamentals. I, personally, believe it will succeed in its rebrand and will give Binance, BSC, and BNB a run for their money. Don’t sell for a loss now when you can sell for a profit 2 years from now (inflation-adjusted…)
  • Don’t Buy Anymore CRO Right Now —> market conditions are currently very volatile and I, honestly, have no idea where the price of CRO will settle. I believe CRO will not fall below 0.20 USD/CRO but I also might be wrong if CDC takes actions to move the price further down. At the end of the day, I think you have 2 years of bear market instability on your side.
  • Prepare To Buy More CRO In The Next 6-12 Months —> if you haven’t lost faith in the company, you may consider buying more CRO but at the 0.20-0.25 USD/CRO price point. Bear in mind that your DeFi wallet will continue to offer you ~12% returns on staking your CRO through various validator nodes if you do choose to buy CRO in the next 6-12 months.

What am I going to do?

For me, as I prefer and need to have income as well as growth (capital gains), I cannot just wait for CRO price to increase. I know their price will increase gradually with their

  • defi
  • cronos chain
  • crypto early-stage investing
  • others

But I need income to live. So for me, I liquidated a chunk to both

  • fiat, which I’ve drawn out to my bank account
  • top 10 non-stable coin positions

I’ll be withdrawing more crypto to fiat purchasing a rental property that has more stability.

Am I still in CRO?

Hell yeah.

I believe they can be a strong contender to Binance as they grow. I am still annoyed at the way they communicate and do things, and moving forward, I am setting my expectation that eventually there will be zero earn and stake rewards, and my returns on CRO will be purely on price action of CRO coin.

How To Become A Millionaire (The Lazy But Slow Way)

How To Become A Millionaire (The Lazy But Slow Way)

I became a millionaire twice over due to my business and my crypto investments, but man, those are highly intense with lots of risks, pressure and stress.

Not to mentioned health neglect too – this is the worst. I remember those moments where it was so stressed I blanked out. And the slow neglect of my health and fitness. Nasty stuff, ew.

For those who have time and patience to wait, and some cash you can inject every month, I present to you, the best but slow approach to become a millionaire (or multi-millionaire) using the magic of compound interest, consistent investing and reinvesting.

I recently discovered:

“Vanguard and Chill”

I mean, I’ve come across that a couple of times now in subreddits of fatFIRE, and never thought their ROI was so high (average compounded interested per year is 14%!) – it’s no wonder they chose vanguard and chill.

I will be studying this approach seriously – looks like a fairly straightforward and easy way to multiply my earnings and savings.

At 14% per annum, I can safely withdraw 7% profits per year and still have 7% growing to counter inflation and add in growth. Much better than the 7-9% offered at wealth management too it seems.

What about yourself?

The Most Important Lesson McDonald’s Founder Ray Kroc Taught About Becoming Rich

The Business Of Ray Kroc, Founder of McDonald’s

In 1974, Ray Kroc, founder of McDonald’s gave a talk at a MBA class at the University of Texas in Austin.

After the class, the students asked Ray to join them for some drinks, and he said okay, sure.

Between drinks, Ray asked them

What business am I in?”

The students laughed, because they thought Ray was just fooling around messing with them…but he was serious.

No one answered though.

Ray asked again, “what business do you think I’m in?”

The students laughed again, and a brave soul shouted,

Mr Ray, the whole world knows you’re the godfather of the burger business in McDonald’s.

Ray laughed and said – “yes. that’s what most people would think and say about me“.

He stopped and then shared this:

“Ladies and gentlemen, I am not in the hamburger business only – my true business is in real estate.”

Lesson #1

Ray then explained that in their business plan, yes, primary front end business was to sell hamburgers, fries and milkshake franchises, but he never lost sight his long term big goal, which was real estate.

That’s why every franchise that was sold, he paid particular attention to the location, reasons being

  • Number 1 reason: he knew that location was a very big factor in the success of each franchise
  • Number 2, his main game is real estate.

So what he did was that he got every person that bought McDonald’s franchise to pay for the land under the franchise for Ray Kroc’s organization.

Lesson #2

Of course these franchisees also made money as franchise owners and business owners – Ray didn’t just take and take.

He made many franchise owners rich in the process, and many of them ended up owning more than one franchise with him.

Today McDonald’s is the single largest owner of real estate in the world. They have real estate at locations at busiest street corners and intersections in the world.

I can already imagine the faces of students, their minds would have been blown upside down left right center.

Blow Mind Mind Blown GIF - Blow Mind Mind Blown Explode - Discover & Share  GIFs

What I learnt from Ray Kroc is to know my big and long term game, and to take step by step moves that bring me closer and closer to my goals. He also made others rich in the process.

What’s your business and game plan?

Are you building a business or having a career without a long term game?

If you hadn’t thought about it, it’s time to think about leveling up your game.

Maybe save more to invest in real estate locally and around the world, and get paid rental income.

Or put money in wealth management and get wealth managers to make you more.

Or vanguard and chill, as many fatFIREd individuals put it.

Whatever rocks your boat.

So what’s the business you’re in?

Have a think and let me know in the comments below.

Crypto com USDC Stablecoin Earn Versus Binance USDC Flex Earn – Which is better?

So I wanted to compare between Crypto.com’s flexible USDC earn program versus Binance’s flexible USDC earn program (as crypto.com is an upcoming contender to binance), and I found some nice nuggets:

Binance earn flexible USDC program is documented at 1.2% but it’s actually a blended of:

  • First $75,000 USDC : 1.20%
  • Above $75,000 USDC : 0.30%

So if you put $100,000 USDC earn in Binance you will get

  • First $75,000 @ 1.20% pa = $900
  • Next $25,000 @ 0.3% = $75
  • Total = $975 end of 12 months ~ 0.00975%

Compare that to Crypto.com’s flexible USDC earn problem:

Firstly, crypto.com’s earn program is 1.5%, so $100,000 is $1,500 per annum, an easy win comparatively…but we’re not gonna be satisfied with that right?

I speak for myself at least (eheh) – what I want to know i:

how do we earn more on binance and crypto.com earn?

3) If you’re good with USDT, Binance flexible earn documents a 10% per annum…

but it’s a blended percentage of

  • First $2,000 USDT : 10.00%
  • $2,000-$75,000 USDT : 3.00%
  • More than $75,000 USDT : 1.00%

This means that it’s NOT a pure 10%, but a blended, mixed.

A clearer illustration, so $100,000 in binance USDT earn =

  • First $2,000 @ 10% = $200
  • $2,000 – $75,000 ($73,000) @ 3% = $2190
  • Last $25,000 @ 1% = $250
  • Total $2640 ~ 2.64% — much better than a blended 1% of USDC flexible earn in Binance.

Better than crypto.com’s $100K in USDC flex earn too (but USDT versus USDC…different).

How to earn more % USDC on crypto.com

  • Stake more cro (go up in tiers) – but of course this requires more cash (buying CRO coins and getting their higher tier card, the higher the tier the better the rates, but min Obsidian Jade / Indigo will give you best Earn rates)
  • Stake fixed 3-month term (more than USD 30K will be half the rates but the rates are higher anyway)* (This is key).

The best terms are based on 3-month earn program, which can net you up 6% for the first $30,000 and 3% above $30,000.

That’d mean if you put in $100,000 for 3 months with 400 or less CRO staked, your USDC earn rates are:

  • First $30,000 @ 6% = $1,800
  • Next $70,000 @ 6% x 0.5 = $2,100
  • Total $3,900 ~ 3.9%

Let me know what you’re doing with your crypto.com earn.

Crypto.com Cuts Earn Rates Again – Stablecoins 2% Flexible Term

Arghhhhh!

I shared in an earlier video how crypto.com was changing their crypto.com earn rates which would go live on 4th April 2022 (video here: https://www.youtube.com/watch?v=xUlA6bTpDyw)

And most of our begrudgingly lick our wounds, accepting it generally, and I would believe many of us are planning our next 3-month lock in…but alas!

Crypto.com made another sudden change, by further decreasing the rates on 26th March 2022, one week before 4th April =(

Basically, the rates dropped more eg if you stake 4000 CRO, a 3 month USDC earn would net you 8% on the first USD 30K and anything above that would be 4%. (From 12% pa to 10% to 8% pa)

Does this mean doom and gloom for crypto.com?

Nah, I dont think so – their T&C indicated they could change the terms anytime, and though I’d like to to be done in a cooler, open and sincere manner, they didn’t.

But this doesnt mean that their company suck.

If anything, crypto.com is doing a lot of aggressive marketing and advertising for their platform, and I am looking at good price action of CRO (cronos) coin as a whole.

I will be aiming to upgrade my card from icy white to obsidian to get more cashback too.

I’m also at a place in my life where I am looking to enter real estate for both living and rental, so…I’m gonna roll with this. They never promised we would get those delicious 12+2% forever, so I enjoyed it whilst it lasted =)

For those who are searching for more stablecoin earn rates

I’ve been hearing people mention these two:

  1. Anchor Protocol is paying up to 19% per annum (droooooooool)
  2. Celsius Network is paying up basic at 7.1% and platinum tier at 9% which is pretty sweet

I have not used these both at all, so I cannot vouch for them on a personal basis, buuuuuuuuuut celsius looks pretty solid as a company as well. I will be taking a look at them to consider diversifying from crypto.com

Not financial advice – I am sharing with you the most recent crypto.com changes to their crypto earn program, how it’s affecting my passive income cashflow, what I’m planning to do with creating more passive investing income.

Crypto.com Cuts Crypto Earn Passive Income Rates

So it was a sudden and shocking update to me in the crypto.com subreddit where fellow users started to complain about the buried, unannounced new crypto.com crypto earn terms.

I searched around and found the update here: https://help.crypto.com/en/articles/2996965-crypto-earn-how-does-it-work

In a nutshell, a few big changes

  1. The changes affects everyone, regardless you’re a “whale” obsidian or a beginner.
  2. New terms:
    • New rates of few increases in % namely BTC, ETH, SOL, DOT, AVAX, MATIC.
    • Most of the damage is to stable coins where rate decreased from 12% pa to 10% pa.
    • Everyone’s maximum earn is decreased to first $30K will get full rates; anything above $30K is half rates (It is 2b that is the killing blow to stable coin staking.)

This in essence, is very shocking to higher-tier cardholders such as the Icy White / Rose Gold and the Obsidian, both of which previously had crypto earn limits of USD 1M and USD 2M respectively.

Of course people are upset, because the way it was done was unfortunately nonchalant and seems “a little hiding” because they were expecting backlash.

…though frankly I believe most of us who were with crypto.com from beginning knows its a business and will operate like one, but at leastconsider tier it up man, say use these earn tier limits

  • Obsidian $2M >> $1M
  • Icy White / Rose Gold $1M >> $500K
  • Royal Indigo / Jade Green $50K
  • Ruby Steel $30K
  • Midnight Blue $5K

Does this change anything?

Say CDC refuses to budge and change:

  1. I feel that this will cause a short term dip as people who are upset as well as those who needs the cashflow will either sell their CRO to stable coins and move it to other places that offer better yield. There are some out there, google search (others had mentioned)
  2. This affects crypto.com EARN but NOT stake. Staking for Icy and above still gets 12% pa for CRO card staking. So it’s possibly that some may double down on CRO staking (especially those who are bullish on CRO, cronos and crypto.com), leading to a more stable CRO network as a whole in the mid to short term
  3. Icy and above still gets additional 2% in CRO on top of the half eg 5% + 2%; so some may just eat the difference. Again, I prefer CDC to revise the limits instead according to different card tiers.
  4. It’s possible that new users get more love and CDC attracts more new users too…

On the other hand, if they decide to introduce a better and tiered reward system according to card level, I will be super grateful.

What will I be doing?

I am unlikely to hunt for yield in other platforms. I will likely

  1. Double down in CRO staking to maximize the 12% CRO stake returns (this strategy relies on CRO being stable and growing and/or
  2. Withdraw portion to fiat to pay in part for my home purchase and/or
  3. Continue to stake stable coins but also sell my weekly CRO stake returns to supplement my cashflow

Again, this is not financial advice – I am sharing with you the most recent crypto.com changes to their crypto earn, how it’s affecting my passive income cashflow, my take on how it could have been done better and what I am thinking of doing.

Thank you for watching Crypto com Cuts Crypto Earn Passive Income

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When does passive income activity become non passive?

A man with his hands covered with mud

This is a great question, actually.

To me, passive income activities become non-passive when there is too much active time taken to generate and manage the activities that generate the passive income; or to manage the passive income itself.

I share much about two general types of passive income, which are:

  1. business passive income, where you build offline and/or online businesses, hire and delegate using processes, technology or people, to earn money for you even when you’re not working in the business (anymore or as much as before)
  2. investment passive income, where you invest your savings into dependable investment vehicles to work harder for you and make more money for you at a % return of investment (ROI)

Is investing passive?

Both aren’t exactly fully passive-passive, for example investment passive income.

Of course, even if you invested into index funds, dividend stocks and REITs, you will still have to

  • view your portfolio and adjust / rebalance your portfolio periodically
  • read and maybe respond to emails from your broker(s) and bankers
  • give instructions

Maybe almost-passive for those who do it that way; but you can also go the extreme end if you decide to read and research investment 12+ hours a day haha!

So if you’re the sort who wants to research a lot and spend more than 4++ hours a day on these activities, technically it’s already part time work.

But of course, if you like it a lot and it’s natural to you…does it count as well?

I leave that for you to decide.

Note: But to reach this level, you’d probably need a good chunk invested (to get $50K dividends a year on 5% ROI, you’d need at least $1M invested).

Good problem once you’re here if you ask me, heh.

Can businesses be truly passive?

For business passive incomes, it’s not as straightforward, because with business, many things can happen from a operational standpoint eg

  • accidents
  • health issues
  • absences
  • PR nightmare
  • vendor issues
  • product issues
  • etc

Anything can happen, anytime…and often without much warning.

Bloody good managers and stable business

If your offline business or online business is fairly stable and profitable, one of the best ways to make it as passive as possible, other than hiring and retaining good workers or freelancers, is to hire a bloody good manager.

Not a bloodthirsty mad bastard, but a bloody good manager.

A bloody good manager is a person that

  • that doesn’t thrive on creating drama/politics and making things go upside down
  • knows what the business needs and how to get it done in a consistent, sustainable basis
  • communicates clearly
  • fair, transparent and open

Yeah, it’s hard to find such good people, and normally I promote internally rather than bring in “external” managers to manage.

The “most” passive income stream?

40 year old me today believes that the close thing to passive passive income ie hands off as hands off can be is either of these 3:

  1. A well-oiled business with clear processes and management where the business has zero reliance on me, and still grows year on year.
  2. Continuously purchase index funds on a regular basis (where the dividends automatically gets banked into your bank account) (this can be for similar investment vehicles such as fixed deposits). This approach is good for most people.
  3. Trust with wealth management*. This is my ultimate end-funnel where all my investments and money go, and a set % portion is carved out for me and my loved ones to live on; and another % portion is to reinvestment to keep growing and counter inflation.

Selling our resale HDB…should we buy a new HDB or upgrade to freehold property?

So Louise and myself decided to sell our resale HDB (government public housing) that we bought back in 2009; and now mulling and cracking my brain if we should

  1. buy a new HDB BTO/balance of sales flats OR
  2. upgrade to a freehold apartment

The challenges are

  1. HDB is wonderful with 1 main bugbear: 99 year lease decay. Freehold properties dont have this same issue – but of course the price is more than 250% more PSF wise which I’ll have to liquidate most of my investments to enter, which will take me out of baristaFIRE
  2. I dont want to wipe out my investments and liquidate them to upgrade to freehold apartment. Though the idea of freehold to preserve capital will be good, but that will possibly mean I have to retire later than 50 (aim for 45). I like the peace of mind and heart to make sound decisions and have more time with my loved ones
  3. I want to get my boy to try to enter St Andrews Junior in 2 years time. If we get in, then we’d be staying in potong pasir / woodleigh / bidadari area for a good 5+ years

I have 3 investments to spread out and stack my chances of increasing and growing value, but they will take time to grow tremendously with small chance of failure. At least 5 years to be conservative.

Current decision / conclusion

  1. continue renting until 18 months time when I find out if my boy can enter St Andrews Junior (Primary) or not, if yes I’ll be stuck within 1 KM of here ie potong pasir, toa payoh, woodleigh and bidadari area; if not we are free to move anywhere
  2. purchase a new HDB with 99 years lease after 5 years of Minimum Occupancy (MOP) period, we can either continue staying and let our investments continue to grow as portfolio; or sell HDB with capital gains if the investments do well later to purchase the freehold apartment and preserve the investment portfolio

Tomorrow I’m consulting one of my wealth manager to see if my conclusion is the best one, or if there is a better decision.

HDB or freehold apartment, depends on so many reasons – cash on hand, CPF, salary drawn, investment style/risk, preference for property etc.

You have to decide what suits you, and dont overstretch to purchase large properties and big mortgages if it means that it locks you into work and unable to enjoy it (cos you need to pay the mortgage) or retire early (which is important to enjoy your life, relationships, hobbies, travel etc).

If cash no issue, then no issue la ehehe. But if push comes to shove, I prefer simpler enjoyable life than to have to keep working to pay for something I dont need so big for.

Goodbye, Uncle Lee Chong Yeow

Uncle Lee Chong Yeow aka Dekotiu

I know you affectionately as dekotiu, and I’ve known you ever since I moved to Johor with my late father, Daniel Chua, when I was 7 years old in Primary 1.

I’m 40 years old this year, which means that I’d known you for 33 years.

We didn’t spend that much time together, just here and there, and I only have a few memories that are dear to me.

  • I remember that when we first moved to Johor, we were so broke, you had compassion on us and let us stay with you in Taman Tasik for a bit with your lovely wife and kids, Joyce, Jamie, Shirlene and Jonathan. Until my dad manage to rent a space in the same area too.
  • You used to take us to a japanese restaurant in JB, i think it’s Tokugawa?, somewhere in Taman Pelangi and we had nice Japanese meals and once you ordered the lovely oyster tempura
  • I remember you took us for western meals, Manhattan Grill too
  • My pregnant wife and myself met up with you in Perth where we visited your home there and we had some dimsum if I recall correctly

My parents and siblings were often very fond of you, and missed you a lot when you moved back to Australia, then to Penang. The distance and the busy-ness of my work kept us apart.

Dekotiu, I was planning to visit you this year in 2022, but alas, I am too late.

I am sorry I didnt meetup and spend time with you sooner, and I regret it.

May your soul be with God and the angels in heaven, dekotiu.

When Should I Quit My Job To Start A Business?

A number of friends and families ask me, and often they may have this idea that “i’m gonna quit my job now, fire my boss and start my business tomorrow – go big or go home right?

Right??

No, let’s talk about this.

I dont recommend rushing things and going full entrepreneurship at least at the beginning, because it does take time to take traction and build sustainable revenue. Dont get me wrong, I LOVE entrepreneurship (I’ve been an entrepreneur since 2008), but we can do things in a more calculated staged manner.

Let’s explore the next 3 points to find out if you’re ready to pull the plug:

Your reasons to start a business is strong and convicting.

The reason I say this is because business isn’t always smooth sailing – there will be difficult clients and seasons, and your convictions are what will keep you going. Find out why and who is it for.

Maybe you actually like your job and you actually want a pay increment, speak to your boss and ask how to get that increment. Ask and find out the exact steps you need to get to the increment and promotion you want, and invest the extra income for dividends.

If you want more passive income, you can save more (and negotiate a higher salary) and invest into stable dividend stocks for cashflow.

Do you have enough savings for 6-12 months of expenses?

Especially so when you have dependents / commitments such as kids or mortgages / rent etc – having life expenses sorted out so you can focus on business and entrepreneurship will give you the ability to focus and enjoy the journey.

Most of the time, if you’re waaaaay low on money, you could start to become very desperate and make less-than-ideal business decisions.

Squeeze down all your unnecessary expenses you can to give your business more chance to succeed.

Consider freelance on the side (start a side hustle) first

On weekends and after office hours, and once your side hustle is making at least 50% of your day job, then you can choose to quit then or keep both (ehehe)

So when should you quit your job?

Depends on your savings, if you can do side hustle or if you’re the sort to need to throw yourself headfirst into business.

Listen more in the video.